Converging forces reshape the industry
The real estate market is experiencing a once-in-a-generation disruption, driven by forces that are fundamentally reshaping the role of agents and brokers. Semi-private deal networks, a growing class of small investors, legal and regulatory shifts, and intensifying competition among online portals are creating an unfamiliar landscape
High mortgage rates and limited inventory have pushed existing home sales to near 30-year lows, forcing agents to rethink traditional strategies. New listing of homes in the U.S. fell by 1.7% year over year during the four weeks ending December 7, 2025, the biggest decline in more than two years. Success now depends on navigating multiple listing service (MLS) transactions, working with investors, understanding evolving regulations, and adapting to the portal wars that are redefining how buyers find homes. Alternative home ownership models (rent-to-own, shared ownership), non-bank sources of financing, and increasing liquidity for renovating existing homes for the rental market) continue to expand the touch points for both consumers and investors in the residential markets.
Off-market ecosystems change the playing field
A growing share of homes is being sold outside the MLS in semi-private networks and niche marketplaces. Fix-and-flip operators, wholesalers, small investors, and specialized platforms are increasingly buying and selling homes off traditional channels, particularly in the $100,000 to $300,000 range. This has intensified competition where first-time buyers historically have played, particularly in the past two years after decades of extremely low interest rates and loose credit conditions.
We are now seeing that buyers are no longer just homeowners. Fix-and-flip operators and institutional investors are increasingly competing to acquire homes to turn into rentals. While this helps address the housing shortage, it also makes it harder for first-time buyers to compete. These off-market ecosystems are not a reaction to market cycles, interest rates, or regulatory turmoil, but are now a permanent part of the landscape because investors of all sizes have provided a significant impetus for their existence.
Small investors reshape ownership
Alongside off-market activity, a growing population of small investors is changing where capital comes from and how inventory flows. Realtor.com’s mid-year update found that 10.8% of homes sold in Q2 were bought by investors, with small investors accounting for more than 62.5% of those purchases. Many of these buyers are assembling 10, 20, or 100 home rental portfolios, meeting the rising demand for rentals driven by high construction costs and limited down payment availability.
Interest rates have had a bigger impact on existing home sales than any other factor, but competition at the low end of the market remains intense. For agents and brokerages that align with fix-and-flip or investor groups, this creates a new source of transaction volume. While the mechanics of transactions are the same, the mindset is different: instead of helping someone buy a home, agents are helping investors execute a strategy. This represents a separate channel, not a diversion of business from traditional buyers.
Non-institutional (“retail”) investors have a wide variety of sources to find distressed and/or off-market deals such as BiggerPockets, HomeVestors, New Western, Roofstock and their own personal networks, which often times include “traditional” agents with expertise and deep coverage of local markets. Tapping into all of these sources has increasingly become table stakes for creating the deal flow necessary to build and maintain a portfolio of rental properties.
In recent weeks President Trump’s administration has floated the idea of restricting institutional purchases and ownership of single-family homes as a lever to address affordability concerns. Short on details, the idea has industry participants definitely on edge partly because the amount of investment capital and human capital infrastructure that has been earmarked for the single-family rental market. Speculation is rife about how this could or would be implemented (unfavorable accounting treatments, volume limits, letting individuals have a right of first offer, etc.) but this is likely to remain a highly debated topic through 2026.
Regulatory and legal uncertainty
Regulatory and legal changes have introduced another layer of complexity. DOJ scrutiny, the National Association of Realtors’ (NAR) evolving role, and changing commission rules have affected agent workflows. While there was early anticipation that commission changes would dramatically shift outcomes, the impact has been more modest. Transaction dollars have largely moved around rather than disappeared, and interest rates remain the primary driver of activity.
Early uncertainty in 2025 has given way to more clarity, and once rules are understood, market activity tends to follow predictable patterns. Looking ahead, the bigger challenges for housing markets are affordability and availability rather than broker compensation. Zoning restrictions, multifamily limits, and vacant properties have a more significant impact on supply than changes to commissions.
In the wake of the industry settlement with the DOJ, buyer commission negotiation and disclosure created significant but ultimately short-lived chaos for agents and buyers. As the industry navigated how both conversations and processes needed to change, clarity emerged, and both buyers and sellers adapted; buying a home is still an important, stressful transaction, and transparency has benefited the market in multiple ways.
Portal competition intensifies
Competition among Zillow, Realtor.com, and Homes.com has become increasingly an intense as each platform is vying for market share through marketing, agent strategies and technology, all of which have created a “portal war” for consumer attention and listing data. Homes.com, backed by CoStar, is positioning itself as a more transparent and affordable option for agents, challenging the long-standing dominance of Zillow. While multiple portals could theoretically increase liquidity and transparency, measuring their impact is difficult when transaction volumes are down 20–30 percent.
Overall, it remains challenging to isolate what truly benefits agents or consumers when activity is slow.
Compass’s acquisition of Anywhere Real Estate for roughly $1.6 billion, which was completed in early January, exemplifies strategic M&A in residential brokerage as firms consolidate to defend market share amid weak sales, regulatory uncertainty, and competitive pressure from portals and tech‑enabled models. In March, mortgage company Rocket Cos. agreed to buy brokerage Redfin Corp. in a move that aims to reshape how Americans buy, sell, and refinance their homes. In the same month, Keller Williams raised money from Stone Point Capital to arm it for expansion.
Implications for agents and brokers
The industry is beginning to bifurcate. Agents may be bypassed in highly commoditized or investor-driven transactions, but they remain essential in complex, consultative deals. Brokers that diversify into off-MLS marketplaces, partner with investor groups, or provide services such as renovation concierge programs or property management can remain central as these ecosystems mature. Investor-driven activity also affects affordability and inventory. As rehab and fix-and-flip operations expand, older housing stock may be absorbed more quickly, requiring agents to advocate for policies that preserve access and stimulate supply.
Market share concentration amongst a small number of umbrella brands such as Compass, ReMax, Berkshire Home Services and Keller Williams is, in some ways, a response to the democratization of housing data, increasing consumer demands for low-friction access to inventory, and the slow-moving but likely unstoppable impact of technology and AI on how consumers interact with experienced agents and brokerages.
In conversations with PE and strategic investors, we have seen a growing number of brokerages and teams/agents creating specific, targeted strategies for identifying and working with investors to acquire or dispose of single-family homes (either as fix-to-flip or for rental purposes); similar strategies are being deployed to work with new construction developers, regardless of the end buyer’s goal (ownership or as a rental unit). Agents and brokerages with local market expertise can benefit from these multiple channels, provided they recognize that the way they go to market for each of these likely requires different marketing, process expertise, and buyer connectivity.
Looking ahead
The real estate landscape is evolving rapidly. Off-market ecosystems, new investor classes, regulatory shifts, portal wars, and bifurcating agent roles are creating both challenges and opportunities. Human expertise remains critical, with most buyers continuing to rely on agents or brokers. Success will belong to those who embrace change, leverage relationships, and continually refine their value proposition. We believe experienced, tech-savvy brokerages and agents will increasingly capture market share from those unable or unwilling to adapt. Further, leveraging data to find opportunities for buyers, price and market homes more accurately for sellers, and reduce the administrative burden common in most transactions will be key to consumer satisfaction and durable incomes for agents.
Brandon Dobell and Seth Rosenfield are Managing Directors at Brown Gibbons Lang & Company (BGL), where they lead the firm’s Real Estate Services and Technology investment banking team.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].
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